A company manufactures a sells and product it for $120 per unit. The net fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are predictable to be $75 per unit. Evaluate the company's break-even point in (a) units and (b) dollar sales?
Problem
BC Company uses a job order cost accounting system. During the month of April, the subsequent events occurred:
(a) Purchased raw materials on credit, $32,000.
(b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials.
(c) Paid factory payroll for the month totaling $37,700 which adds $8,200 indirect labor.
(d) Assigned the factory payroll to jobs and overhead.
Make the required journal entries to record the above transactions and events.
Problem
A company's 1st January goods in process inventory contained 30,000 units that were 25 percent complete with respect to direct labor. The starting inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were left 20 percent complete. Determine the equivalent units of production for the year using the weighted average method.
Problem
A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does universal advertising that benefits all departments. Advertising expense totaled $90,000 for the present year, and departmental sales were:
Dapartment A......................$356,250
Dapartment B......................641,250
Dapartment C......................427,500
How much advertising expense could be allocated to each department?